AMD cuts chip orders

AMD has cut its chip orders from Globalfoundries amid slow demand and a weak PC market.

The company will buy just $115 million worth of wafers from Glofo in Q4, down from a previous agreement to buy $500 million.

The decision was prompted by weak sales in a troubled PC market. AMD is simply trying to cut costs and ensure liquidity. The company recently announced plans to sell its Texas campus in an effort to raise $250 million. According to Bloomberg, AMD predicts it will be in the black in the second half of 2013 and it hopes to maintain cash reserves of $1.1 billion.

However, the termination of the contract will cost AMD $320 million, but the termination fee will be spread out over several quarters.